II 

114TH CONGRESS 

1ST SESSION S. 1023 

To amend the Internal Revenue Code to provide a refundable credit for 

costs associated with Information Sharing and Analysis Organizations. 

IN THE SENATE OF THE UNITED STATES 

APRIL 21, 2015 

Mr. MORAN (for himself and Mrs. GILLIBRAND) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code to provide a refundable 

credit for costs associated with Information Sharing and 

Analysis Organizations. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. CYBERSECURITY INFORMATION SHARING 

4 CREDIT. 

5 (a) IN GENERAL.—Subpart C of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by inserting after section 36B the fol8 lowing new section: 


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1 ‘‘SEC. 36C. CYBERSECURITY INFORMATION SHARING CRED2 IT. 

3 ‘‘(a) IN GENERAL.—There shall be allowed as a cred4 it against the tax imposed by this subtitle for any taxable 

5 year an amount equal to the qualified cybersecurity infor6 mation sharing organization costs paid or incurred by the 

7 taxpayer during such taxable year. 

8 ‘‘(b) QUALIFIED CYBERSECURITY INFORMATION

9 SHARING ORGANIZATION COSTS.—For purposes of this 

10 section— 

11 ‘‘(1) IN GENERAL.—The term ‘qualified cyber12 security information sharing organization costs’ 

13 means the sum of— 

14 ‘‘(A) dues for membership in a designated 

15 cybersecurity information sharing organization, 

16 ‘‘(B) personnel participation costs, 

17 ‘‘(C) product and service costs directly re18 lated to the sharing of information with a des19 ignated cybersecurity information sharing orga20 nization, and 

21 ‘‘(D) other amounts (not including 

22 amounts for travel) relating to participation in 

23 activities of the designated cybersecurity infor24 mation sharing organization. 

25 ‘‘(2) PERSONNEL PARTICIPATION COSTS.—The 

26 term ‘personnel participation costs’ means the cost 


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1 associated with the time that employees of the tax2 payer spend participating in activities of a des3 ignated cybersecurity information sharing organiza4 tion on behalf of the taxpayer, determined on the 

5 basis of the regular hourly compensation paid to 

6 each such employee. 

7 ‘‘(3) DESIGNATED CYBERSECURITY INFORMA8 TION SHARING ORGANIZATION.—The term ‘des9 ignated cybersecurity information sharing organiza10 tion’ means— 

11 ‘‘(A) an Information Sharing and Analysis 

12 Organization (as defined in section 212(5) of 

13 the Homeland Security Act of 2002 (6 U.S.C. 

14 131(5))), 

15 ‘‘(B) a local, regional, or State fusion cen16 ter (as defined in section 210A(j)(1) of such 

17 Act (6 U.S.C. 124h(j)(1))), or 

18 ‘‘(C) an organization that has been identi19 fied by the Secretary as such in consultation 

20 with the Secretary of Homeland Security, 

21 that shares cyber-threat information in a structured 

22 format and standardized language designated by the 

23 Secretary of Homeland Security through a set of 

24 services and message exchanges to enable automated 

25 and near-instantaneous sharing of actionable cyberVerDate Sep 11 2014 07:11 Apr 28, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1023.IS S1023

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1 threat information across organizations and sys2 tems.’’. 

3 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

4 section 1324(b) of title 31, United States Code, is amend5 ed by inserting ‘‘, 36C’’ after ‘‘36B’’. 

6 (c) CLERICAL AMENDMENT.—The table of sections 

7 for subpart C of part IV of subchapter A of chapter 1 

8 of the Internal Revenue Code of 1986 is amended by in9 serting after the item relating to section 36B the following 

10 new item: 

‘‘Sec. 36C. Information sharing and analysis organization credit.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to amounts paid or incurred after 

13 December 31, 2014. 

Æ 


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